Gold plunges on profit-taking

Bullion price fell by VND200,000 a tael (1.2 ounces) to around VND21.90 million on September 10 in Vietnam as the US$1,000 an ounce mark disappeared from the global market due to profit-taking.

Saigon Jewelry bought gold at VND21.85 million and sold at VND21.90 million.

At Sacombank Jewelry, gold was bought at VND21.88 million and sold at VND21.96 million.

Hanoi-based gold dealers Phu Quy Jewelry and Bao Tin Minh Chau purchased the metal at VND21.84 million and sold at VND21.91 million.

Domestic gold price dropped by VND300,000 a tael compared to the top price of VND22.22 million made September 8.

Trading on the bullion market was muted as the metal suddenly changed direction.

Globally, gold fell from more than $1,000 an ounce as investors sold gold to take profits after the metal climbed to a six-month high.

The price for immediate delivery slid $4.3 an ounce, 0.4 percent, to $993.4 an ounce.

Gold futures touched $1,005 before erasing gains.

In Asia, spot gold slightly moved between $993 to $994 an ounce this morning.

The metal, however, was expected to rise again as a pressure of debasement remained on the US dollar.

The US Dollar Index, which tracks the greenback against a trade-weighted basket of six major currencies, sank to year’s low at 76.803.

The greenback exchange rate against the euro was at above $1.45.

Crude oil futures for October settlement gained as much as $0.21 a barrel to close at $71.31 a barrel.

At the yesterday’s meeting in Vienna, OPEC agreed to keep oil production quotas unchanged at 24.854 million barrels a day. As the economic recession showed signs of ending, oil prices hovered around $71 a barrel.

Compiled by Thuy Doan

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